The Governments of Spain and Cuba have signed the agreement to restructure the Caribbean country's short-term debt. The commitment has been ratified today in Havana by the Vice President of Cuba, Ricardo Cabrisas, and the Minister of Economy and Competitiveness of Spain, Luis de Guindos. The short-term debt amounts to 201.5 million euros and is derived from export credit insurance with official coverage managed by CESCE on behalf of the State.
The agreement is the result of talks between the two leaders last July in Madrid and in which the foundations were laid for a later ratification. With the renegotiation of the debt and the signing of Memoranda of Understanding in commercial and R & D & I matters, the Spanish Government wants to promote economic and commercial relations between both economies to mutually take advantage of the opportunities that open up after the new stage. politics in Cuba. It is about supporting the already wide presence of Spanish companies on the island through an adequate framework and the promotion of bilateral economic relations.
The agreement with the Cuban authorities consists of the cancellation of all the default interest and part of the principal of the debt; restructuring of residual debt payments to a 10-year period; and three years of grace for the payment of principal repayment installments. The cancellation has been formalized partly directly and partly through a Debt Conversion Program, which implies the creation of a Cuban Peso Countervalue Fund to finance projects prioritized by the Cuban Government and agreed by both parties.
The agreement reached enables substantial financial relief to Cuba while helping to deepen relations between the two nations and the joint daily work of both countries in financing priority projects for the respective authorities.